TEST -MULTIPLE CHOICE

1. Alia, a graphic artist at an advertising firm, realizes that the head designer, Ryan, has been copying designs from the Internet and passing them off as his own. Alia informs the marketing head about this, which leads to Ryan getting fired. However, after this event, Alia is ostracized by her co-workers. This indicates that the organization has a poor:

a) span of control.
b) ethical climate.
c) distribution policy.
d) administrative framework.
e) strategic objective.

2. Nicki usually makes decisions on the basis of what her friends would expect her to do. Which ethical system do Nicki's actions reflect the most?

a) Humanitarianism
b) Relativism
c) Universalism
d) Egoism
e) Utilitarianism

Scenario A

Use the information given below to answer the following three questions: A paint manufacturer, Blink Corp., faces an ethical question. There has been a problem with the ingredients used in the last batch of paint that has been dispatched. They suspect that a toxic chemical could have been used in the production of the non-toxic product line recommended for play schools and hospitals. The production head along with the marketing head and quality supervisor need to decide quickly on whether they should report the error and pull back the products before they reach the market. Nate, the production head, wants to report the error to the senior management because he is worried about his job should the information about a cover-up be leaked. Lila wants to report the error because it is the right thing to do, and the health of customers and children are at stake. After hearing the opinion of his colleagues, Keith says he wants to report the error as well because he prefers to agree with the consensus.

3. Which ethical system does Nate use in his decision making?
a) Relativism
b) Utilitarianism
c) Egoism
d) Conventionalism
e) Universalism

4. Which ethical system does Lila use to make her decision?
a) Universalism
b) Conventionalism
c) Utilitarianism
d) Relativism
e) Egoism

5. Which ethical system does Keith use to guide him in his decision making?
a) Utilitarianism
b) Universalism
c) Egoism
d) Conventionalism
e) Relativism

6. Haseen, an employee in a company, is facing a situation in which she has to choose between going along with her colleagues and filling out inaccurate feedback against a new employee or informing her manager about the malpractice. In this context, Haseen is faced with a(n):

a) corporate social responsibility.
b) human rights violation.
c) diversity issue.
d) ethical issue.
e) moral rights issue.

7. Jade, a scientist working in the research department of Corals Cosmetics, is asked to not report the ill-effects of using a new product that Corals has decided to launch. Jade's boss offers a hike and a permanent job in exchange for skipping a few details in the report. Jade refuses to do this and asks him to withhold the product from entering the market. According to Kohlberg's model of cognitive moral development, Jade resides in the _____ stage.

a) principled
b) preconventional
c) universal
d) postconventional
e) conventional

8. Chang prefers gymnastics to music. However, he agrees to attend music lessons because his parents want him to become a musician. According to Kohlberg's model of cognitive moral development, Chang resides in the _____ stage.

a) universal
b) utilitarian
c) conventional
d) preconventional
e) principled

Scenario B

Use the information given below to answer the following three questions:
A sales manager, Jordon, is facing an ethical situation wherein his bicycle company that specializes in mountain bikes sold a bicycle with a defective component. If he informs the customer and issues a recall, it would cost him a substantial amount of money. If the bike malfunctions, it could cause serious injury to the cyclist who might use it on rough terrain. His colleagues have suggested three options:
Option 1: Remaining silent about the defect
Option 2: Reviewing company policy, industry practices, and advice from experts
Option 3: Disclosing the defect and suggesting alternatives to eliminate the risk of injury

9. Which ethical approach is illustrated by Option 1?
a) Egoism
b) Utilitarianism
c) Relativism
d) Virtue ethics
e) Life-cycle analysis

10. Which ethical approach is illustrated by Option 2?
a) Virtue ethics
b) Relativism
c) Egoism
d) Utilitarianism
e) Universalism

11. A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been specifically taken to:

a) develop a compliant workforce in the organization.
b) establish an ethnocentric work environment in the organization.
c) increase punitive actions against wrongdoers in the organization.
d) create an ethical climate in the organization.
e) stay away from ethical dilemmas in the organization.

12. Amelie conforms to the norms established by her church and ensures that her behavior always meets the expectations set forth by her parents and the church. According to Kohlberg's model of cognitive moral development, she resides in the _____ stage.

a) conventional
b) principled
c) preconventional
d) postconventional
e) utilitarian

Scenario C.

Use the information given below to answer the following three questions: Two managers at Zeal Corp., Neil and Zoe, are discussing an e-mail they received about how decisions are evaluated and made on the basis of right and wrong at their company. Neil's reaction is, "What they mean is, if you play smart and don't get caught, you are innocent. If you do get caught, you pay the price." Zoe, on the other hand, has a very different idea. Her response is, "I believe that individuals should take personal responsibility for their behavior. I would like our organization to integrate that idea into everything we do here at work."

13. The processes by which decisions are evaluated and made on the basis of right and wrong in a company refers to its:

a) distribution channel.
b) corporate code.
c) ethical climate.
d) organizational dynamics.
e) legal responsibility.

14. Which type of ethics program does Neil prefer for the company?
a) Compliance-based
b) Systems-based
c) Integrity-based
d) Consensus-based
e) Associate-based

15. On the basis of Zoe's response, which type of ethics program does she prefer?
a) Associate-based
b) Compliance-based
c) Consensus-based
d) Integrity-based
e) Systems-based

16. Tia had differences of opinion with her boss, who discriminated against employees based on their ethnicity and social background. In one instance, her boss falsely accused a member of a minority race of fraud. Tia took this up to the top management as she believed all members of the organization should uphold some values for it to function well. Tia was following the ethical system known as:

a) communism.
b) egoism.
c) ethnocentrism.
d) universalism.
e) relativism.

17. In the context of business ethics, which of the following is true of an ethical leader?
a) An ethical leader places personal interest before the common good of the organization.
b) An ethical leader should solely focus on being a moral manager.
c) An ethical leader has a strong personal character.
d) An ethical leader lets ethics be managed by benign neglect.
e) An ethical leader is quick to take credit for the accomplishments of his subordinates.

18. Nate, a teenager, helps his grandmother by bringing in her weekly supplies and taking out the garbage, only if he receives a weekly allowance from his parents. According to Kohlberg's model of cognitive development, he resides in the _____ stage.

a) postconventional
b) universal
c) preconventional
d) conventional
e) principled
 
19. Diya uses certain principles, rules, and values such as honesty, compassion, and integrity in her daily life to determine what is right or wrong. Which of the following does she employ when making decisions?

a) Moral right
b) Moral philosophy
c) Egoism
d) Business ethics
e) Autocracy

20. In the context of business ethics, which of the following statements regarding ethics codes is true?

a) The statements provided by public companies regarding their code of ethics, as required by the Sarbanes-Oxley Act, are often just for show.
b) The code of ethics is drawn up by an organization's administrative department.
c) Ethical codes focus exclusively on employee conduct and avoid subjects such as the environment, technology, and political activity.
d) The Sarbanes-Oxley Act requires all private companies to disclose their financial statements.
e) Executives pay most attention to their company's code of ethics when their senior managers instruct them to do so.